LIVE MARKETS-Stocks aren't scared of the big, bad bond market

By Reuters News

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

STOCKS AREN'T SCARED OF THE BIG, BAD BOND MARKET

This week has been dominated by the big, bad bond market, where yields around the world have risen to multi-decade, and, in some cases, record highs. The 30-year Treasury bond yield has hit its highest since 2004. Long-dated yields from Japan to Germany have risen sharply.

Almost as dramatic as the levels has been the speed of the move. An index of bond market volatility has hit its highest since late March. The ICE BofA MOVE index .MOVE has hit 104.58, the most since March 31. Week on week, it's up 37.2%, the largest such rise since the regional banking crisis of March 2023.

Reflecting how sanguine the stock market has been in the face of rising borrowing costs, the VIX equity volatility index .VIX is not far off its lowest this year. The VIX, which many view as the market's "fear index", hit a 2026 low of 13.8 in early September and is now only around 16. In the last week, it's barely budged, up just 1.5%.

The Nasdaq has hit record highs this week .IXIC on the back of renewed optimism over AI, while the S&P 500 .SPX is not far behind. The STOXX 600 .STOXX, which is more heavily weighted to healthcare and consumer stocks like luxury, has struggled a bit in the last couple of weeks of bond selloff, but is still only a couple of percentage points below August's highs too.

Based on the market's various fear gauges, stocks aren't just surviving the bond market rout, they're thriving, for now.

(Amanda Cooper)

EARLIER ON LIVE MARKETS:

EQUITIES NEARING 'BOILING POINT' CLICK HERE

STOXX HEADING FOR POSITIVE WEEK CLICK HERE

EUROPE BEFORE THE BELL: FUTURES HIGHER, OIL EBBS CLICK HERE

WHEN TREASURIES CATCH KOREA'S VOLATILITY BUG, TAKE COVER CLICK HERE

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.